– Indonesia Macroeconomic performance:

1. Please answer all questions. To gather background information, you are permitted to use any published works or web sites.You must develop your own answers to the questions and use your own wordswhen writing out the answers to the questions.
2. If you think that it strengthens any of your answers, you may make limited use of direct quotes from other sources.  Such direct quotations (including material cut and pasted from web sites) must be clearly identified (for instance, enclosed in quotation marks or indented and set off from the standard text), and you must immediately attach the citation that indicates the source of the quote.  No plagiarism allowed.
3. In your written answers, you do notneed to use footnotes/endnotes. As a part of your written submission, include an appendix with a list of all sources that you used and found helpful as you prepared to write your answers.
4. The basic text of your answers should be in 8.5-point Times New Roman font, with single-spaced lines, and with an extra line space between different paragraphs and between different answers. You may attach or insert tables, charts, or other similar items that are referenced from your text if these enhance your answers.
5. There is a mandatory length limit.  The submission should be no more than 5 pages of text.

Notes to Editor. Please review Part 1 and Part 3 for any improve the below (there is no Part 2 to be edited)

1. Grammar and spelling
2. Questions and Content: Ensure that the question is answer with the content provided. Feel free to change order of sentences if needed.
3. Feel free to add or update any Economics relevant information that can help fulfill the questions
4. Please review that I used quotations properly as indicated above. If needed, please feel free to update the quotations.

Part 1

PART 1a: Describe and discuss Indonesia’s macroeconomic performance during years from 2013 to present.

PART 1b: During the next 2 to 3 years, what are the 2 most important risk that could have an adverse effect on the country’s macroeconomic performance. Explain how they can impact Indonesia’s macroeconomic performance.

Part 1c:  Ideas on how the country’s government can improve the country’s macroeconomic performance. Focus on changes in the stance, thrust and implementation of such policies now. Why should they be put into effect now as these changes will be needed in the near future.

PART 3

Part 3 Investing in Indonesia’s uncovered debt security vs USA debt security and why>

Assumptions:

1. Assume you are a U.S. investor who calculates your income and wealth in U.S dollars.
2. No asset or liabilities in Indonesian currency.
3. You are Considering an UNCOVERED international financial investment into a debt security denominated in Indonesian local currency, (rather than US comparable dollar debt security)
4. The debt security you are considering should be issue by Indonesia’s government (or by a high-grade corporate issuer based in Indonesia) and the U.S. debt security should be one that is issue by the Federal Government.

Additional assumptions:

• You plan to hold the investment to maturity.
• Each debt security should have the same (or very similar) maturity. Specifically, a maturity in the range of 1 to 2 years.
• You need source(s) that provide yields to maturity (interest rates) for the appropriate debt security.

1. Explain what are the macroeconomic factors that you will consider in your analysis of whether or note to make an UNCOVERED international financial investment in the debt security of your country? Using actual information about these factors.

1. Which of these factors appear to be favorable for making the uncovered international investment? Explain.
2. Which of these factors appear to be unfavorable for making the uncovered international investment? Explain
3. Which of these factors appear neutral? Explain

1. To conclude your answer for this part, indicate whether or not you would make this uncovered international financial investment. Explain why you would or would not make the investment.

Notes:  In your answers, Focus on macroeconomic concepts and tools that are relevant to the analysis.